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Over the years, company had continually found a way to improve Human Resource Management in handling the employees. This been done to support all the activity involved the company management such as employees benefits, employees satisfaction in workplace and easier way in handling or support in business operation. One of the solutions is using Hunan Resource Information System (HRIS).
HRIS is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. Normally packaged as a database, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Typically, HRIS provide management of all employee information, reporting and analysis of employee information, company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines, benefits administration including enrolment, status changes, and personal information updating, complete integration with payroll and other company financial software and accounting systems and applicant and resume management.
The HRIS that most effectively serves companies tracks such as attendance, pay raises and history, performance development plans, training received, disciplinary action received, personal employee information, and occasionally, management and key employee succession plans, high potential employee identification, and applicant tracking, interviewing, and selection.
An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. With an appropriate HRIS, Human Resources staff enables employees to do their own benefits updates and address changes, thus freeing HR staff for more strategic functions. Additionally, data necessary for employee management, knowledge development, career growth and development, and equal treatment is facilitated. Finally, managers can access the information they need to legally, ethically, and effectively support the success of their reporting employees.
As we know that not all the company now use this HRIS. Some small company still used the traditional way in handling the management and the employees. They maybe do not have an enough capital to buy the HRIS software. They also do not concern how important of HRIS and how effectiveness the HRIS, because they think that they are a small company, so do not need the software. Trough this research, it will give a depth understanding on the role of HRIS in Human Resource Management and the effects of it.
1.1 BACKGROUND OF THE STUDY
The spacious arrangement of HRM activities for example, planning, recruiting, selection, and training just to mention but few place enormous responsibilities on supervisors and managers alike. These embrace analyzing jobs, planning labour needs, selecting employees, orienting and training employees, managing compensation, communicating (which includes counselling and disciplining), and maintaining employee commitment.
As we know, human resource management (HRM) issues have been major concern for managers at all levels, because they all meet their goals through the efforts of others, which require the effective and efficient management of people (Dessler et al., 2000). In order to get better understanding on the role of human resource information system (HRIS) in strategic human resource management (SHRM), we are conducting this research. The main idea to show how the performance of the HRIS can be improves competencies of human resource management task. As the business need to be competitive in a market, they have increase their performance same as the human resource management. Strategic human resource management is one of the important components in the company. They are handling the people, which are employees, managers and all links with the company.
The human resource information system (HRIS) is considered to be of strategic as well as management importance. In research as well as in practice, it believed that an effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. The company will need to select a Human Resources Information System and customize it to meet their needs.
The greater degree of human resource information system is strongly associated with higher levels of performance, which has been a prevalent assumption behind much human resource information literature.
Review on the past research, it had focus more on the effects of the role of human resource information system towards strategic human resource management by impacts of job roles and the size of the company. This research focuses more on the element of job roles, size of the company and competencies of human resource task.
4.0 DATA ANALYSIS / FINDINGS
4.1 RESPONSE RATE
Out of the 100 questionnaire distributed, the entire questionnaire are included from the analysis due to completeness responses. The samples are divided roughly between male and female. It shown in table 4.1 below:
Cumulative Percent (%)
Certificate or Diploma
Prof. certificate or Degree
RM 1,500 - 2,500
RM 2,500 - 3,500
After we collected the data through doing the survey, there are no missing values exist in the questionnaire. Respondents fill the entire questions.
Data screening is important to analyze data. During data screening, we will check the normality of the data collected. It is important to test the normality before proceeding to another step. To test normality, we will show by comparing the mean, standard deviation, skewness, and kurtosis level. For a data to be normal, the value of mean must be greater than standard deviation, the value of skewness must be between -2 to 2 and the value kurtosis must be between -3 to 3.
Competencies of HR task
Size of the company
From the table 4.2, we can see that the skewness value of three independent variables is fall in the range -2 to 2 while the kurtosis also fall in the range from -3 to 3. Kurtosis is measure of the ‘peaked nesses of the probability distribution. Therefore, we can say that the data collected are normal because it not over the minimum and maximum value.
For the competencies of HR task, we can see the kurtosis value is 2.300, which is less than the maximum value. Whereas, job roles had 0.458 for the kurtosis value and more than the minimum value, which is -3. Finally yet importantly, the size of the company, the kurtosis value is 2.843 that less than the kurtosis maximum value.
4.3 RELIABILITY ANALYSIS
Internal reliability can be tested by using Cronbach's Alpha, which is based on the average correlation of items within a test if the items are standardized. Cronbach's Alpha ranges in the value of 0 to 1. This is because Cronbach's Alpha can be interpreted as a correlation coefficient. Normally, the variables are internally reliable if the Cronbach's Alpha is greater than 0.7.
No. of Items
Competencies of HR task
Size of the company
The factor of job roles on the role of Human Resource Information System (HRIS) in Strategic Human Resource Management (SHRM) is stimulating company continuous and so on. From the table 4.3 above, is the output of reliability analysis for items in job roles. It is shows the Cronbach's Alpha is 0.750, means this variable is good because all respondents have the same or similar opinion towards the items in job roles.
The items in competencies of Human Resource task include the performance of the employees in enhancing the company or business flows. The performances are important in company management because from that we can look whether the HR employees understand their job scope in HR management and the performance using the HRIS. Form the reliability test, we can find thet the Cronbach's Alpha is 0.927 which greater than 0.700. This is also shows that all respondents have the same or similar views towards the items in competencies of HR task.
The items size of the company consist of the size in which company we choose whether it is relate with the HRIS or not. This software for not only the big company used, but small company also can use the HRIS. It is because if the company use this software, the flow or progrees in handling or manage employees much easy rather than use the traditional ways. From the reliability test above, we can see that the Cronbach's Alpha for the size of the company is 0.743, which is greater than 0.700. This is also shows that all respondents have the same or similar view towards the items in size of the company.
For all these factors, Cronbach's Alpha if the Item Deleted for each constructs are less than Cronbach's Alpha for each contruscts. Therefore, there is no question should be deleted.
4.4 REGRESSION / COEFFICIENTS
To explore the predictive ability of an independent or a set of independent (predictors) variables on one dependent (criterion) variable, regression is used. It is a more sophisticated extension of correlation. It not only tells dependent variables and us about the relationship and the significance of the independent it also predicts the outcome from predictors.
Regression uses least square method, which is a simple mathematical method of ensuring the straight line that runs trough the points on the scatter diagram is positioned so as to be the best possible. The regression coefficient tells us how much of the variance in the dependent variable explained by the independent variable.
To examine the hypothesis are accepted or rejected, coefficients is used. For a hypothesis to be accepted, the significant level must less (<) than 0.05. On the other hand, the hypothesis that has the significant level greater (>) than 0.05, it should be rejected.
Adjusted R Square
Std. Error of the Estimate
(a) Predictors: (Constant), Size of company, job roles
(b) Dependent variable: Competencies of human resource task
Size of company
From the table above, we can find that the R=0.821. This means that the positive relationship between all independent variables where are job roles and size of the company to dependent variables which is competencies human resource task are quite strong. The R square value, 0.675 means that all items in job roles and size of the company only explain 18.0% of competencies in human resource task.
For a hypothesis to be accepted, the significant level must more (>) than 0.05. The significant level of job roles, which is 0.000, is less than 0.05 and the hypothesis there is no relationship between the roles of human resource information system in term of job roles can be rejected. Therefore, we have to accept H1 which is there is a relationship between role of human resource information system in term of job roles.
Significant level of size of the company is 0.006 and we have to reject the H0, because of the significant level of size of the company is less than 0.05. We have to accept H1 which here is a relationship between the role of human resource information system in term of size of the company.
The next evaluation crosstabs, the evaluation based in one of demographic factor which is what is your position in the company and the cross variable is one of most interesting part which is job roles. This analyze is to look the respond of the respondent by position in their company to this particular factor. Tables below are shows the frequency of job roles factor towards respondent's position in company.
From table by item 1 below we can see the higher score is _____ which is most from _____
4.5 Factor Analysis
To examine the error terms, the researchers can examine the potential problems caused by observations that do not meet the assumption of regression. Residuals represent the difference between the observed (sample) values of the dependent variables and the predicted values of dependent variable predicted by the regression model. The researchers conduct a residuals analysis to determine if any of the assumptions of the regression model have been violated (i.e., outliers). The residuals analysis includes normal probability plot of regression standardized residuals, and scatterplot.
4.5.1 Normal Probability Plot of Regression Standardized Residuals
It can compare the observed standardized residuals against the expected standardized residuals from a normal distribution. If the observed residuals are normally distributed, they will be close to 45o line shown on the plot. In his research, all the observed residuals for each independent variable are fall or to close to the degree 45o line, thus the researchers conclude that all the five construct's observed residuals are normally.
It can compare the standardized predicted values of the dependent variable against the standardized residuals from the regression equation. If the scatterplot of residuals shows no large differences in the spread of the residuals and most of the points are within -2 or +2 range, this shows that the findings suggest a linear relationship. In this research, the entire three construct's scatterplot shows that there is no large differences in the spread of the residuals and most of the points are within -2 or +2 range. Thus, the researchers conclude that these entire three construct suggest a linear relationship between in independent variables and dependent variable.
Concept in the Human Resource Information System is made up of certain factors; competencies of HR task, job roles, and size of the company as what had been explain in literature review and it believed to be important construct in order to determine the human resource information system performance.
To make an outcome, researchers actually look into data analysis and findings where shows that there are two significant factors in explaining the human resource information system performance towards job roles and size of the company.
In data analysis and findings, the researchers used 95% confidence interval to test multiple regression whether to accept or do not accept the hypothesis create. So here, any significant value large than (> 0.005) need to be accept the H0 and do not accept H0 for any significant value which is small than (< 0.005) which means the researchers need to accept H1. Result of the hypothesis as shown below.
There is relationship between the usage of HRIS in term of competencies of HR task applied H1 accepted and do not accept H0.
The results revealed that there is a strong support for the statement that HRIS plays a major role in strategic HR tasks. The findings are consistent with the organizations' increased reliance on the use of HRIS in support of strategic HR tasks, and HR professionals' higher professional ratings after using HRIS. Hypothesis 1 is therefore accepted.
There is relationship between the usage of HRIS in term of job roles applied H1 accepted and do not accept H0.
The job roles of HR employees and managers will affect the likelihood of usage of HRIS in a company. Higher level of management position will have higher percentage of using HRIS. There is evidence that HRIS are used in support of strategic HR tasks. The findings are consistent with the organizations' increased reliance on the use of HRIS in support of strategic HR tasks. Hence, hypothesis 2 is accepted.
There is relationship between the usage of HRIS in term of the size of the company applied H1 accepted and do not accept H0.
The degree of HRIS usage in respondents' organization in the SME differed from the large organizations. In other words, the degree of HRIS usage in respondents' organization is dependent on the type of organization. The large companies favoured HRIS usage than the SME. Moreover, the results from testing the extent of HRIS usage in support of specific strategic HR tasks were as follows:
There was a significant difference in the proportion of SME and large companies, who use HRS in support of communication as an HR task. There was strong evidence that the degree of use by SME was lower compared to large companies. Human resource development and workplace learning. The test showed no significant difference in the proportion of users from SME and large companies who use HRIS in support of human resource development and workplace learning. There was no evidence that the extent of use by SME were any different.
There was a significant difference in the proportion of users between SME and large companies, who use HRIS to support Career management as a strategic HR task. There was evidence that the extent of HRIS use in support of career management by large companies were higher.
The study showed no significant difference in the proportion of users between SME and large companies, who use HRIS to support Commitment management as a strategic HR task. There was no evidence of difference in the extent of HRIS use in support of commitment management between SME and large companies.
There was a significant difference in the proportion of users between SME and large companies using HRIS in support of Leadership management as a strategic HR task. There was strong evidence of greater HRIS use in support of leadership management among large companies.
Business process reengineering
There was a significant difference in the proportion of users between SME and large companies, who use HRIS to support business process reengineering as a strategic HR task. Once again, there was strong evidence that HRIS use in support of business process reengineering was higher in large companies.
Managing trade union relations with the organization
There was evidence of difference in the proportion of users between SME and large companies, using HRIS to support managing trade union relations as a strategic HR task. SME usage was significant, demonstrating limited use of HRIS in support of this.
There was also a significant difference in the proportion of users between SME and large companies, using HRIS in support of decision-making as a strategic HR task. There was evidence that HRIS use in support of decision-making was lower in SME.
In sum, there was overall evidence of difference in the proportion of users between SME and large companies, using HRIS to support specific strategic HR task. SME had limited use of HRIS in support of specific strategic HR tasks compared to large companies. The conclusion is therefore that HRIS will be used differentially by Small and medium sized companies in support of strategic HR tasks relative to large sized companies. Hypothesis 3 is then accepted.
An organization gains competitive advantage by using its employees effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Torrington et al., (2005: 5) identified the role of the human resource functions with the key objectives.
In going behind the rhetoric of ‘The best performance HRIS in Human Resource Management' shown that evidence cannot be taken for granted and that more research is needed in particular with regard to the effect of organization performance on Human Resource Management. Research supports the idea of research framework and performance evidence 100 and confirms the importance of defining clearly the boundaries of studies systems as differences in scope may give different results. Research also supports the idea of using the Human Resource Information System (HRIS) can change the progress of Human Resource Management in handling employees to be a greater ways.
Finally, research adds the debate with in respect of the kind of performance that can be improved thanks to Human Resource Information System (HRIS). Swink et al. (2007), Stonebreaker and Liao (2004), Zailani, and Rajagopal (2005), conclude that there are limitations in research, which views human resource information performance as a monolithic concept: ‘The effect of human resource information system performance on human resource management'. Our result confirms this and illustrates the need for a multi-dimensional approach not only concerning the concept of the system but to performance and context.
The sample size is another limitation of this study. The sample consists of divisions of Human Resource employees and managers in various areas. Because of it is hard for us to find the sample; we just go to the Master Student in Business Administration, University of Malaya because some of them are worker in Human Resource or management field. So, in this research, we notice that result is not hundred percent support our objective, which is some student are not familiar with this concept, and because of that, we get result that not fully support ‘The Role of Human Resource Information Systems (HRIS) in Strategic Human Resource Management (SHRM)'.
Samples of small and most of them are student might provide different sets of results. However, we believe the results can still offer important guidelines for replicating the study over a larger sample of small. The results from a larger and heterogeneous sample might provide a better basis to completely revise the theoretical model. However, seeing the nature of the questions spanning human resource management performance on human resource information system, the few numbers of divisions and the low response rate are not considered entirely unusual. Despite these limitations, the study remains to be useful in clarifying the effect of human resource management performance on human resource information system.
This research had being distributed the questionnaire to the white-collar respondents in order to get an accurate data. Therefore, this research contributes the clarification of the concept of human resource information system and a better understanding on its effect to the human resource management performance. The framework had provided the structure hat had being a guideline in making the research. The review also provides a starting point in developing the research questions for the human resource information system and for the future study.
From the discussion, it can be conclude that there is relationship between the two variables, which is job roles, and size of the company with the competencies of human resource task or performance. This meant that when organization implements the human resource information system in the human resource management could increase their performance though the job roles and size of the company.
As the results, show that the increase in human resource performance are being influence totally by human resource information system. Therefore, the company should do a research or study the impact of human resource information system (HRIS). Most of the company nowadays used this software because it helps the company or human resource management to increase their performance in handling the employees.
In the other hand, the human resource information system and its relationship or effect to the competencies in human resource task or performance is an interesting research topic. Therefore, the future research is needed in order to get a depth understanding about the effects of human resource information system (HRIS) in strategic human resource management (SHRM) performance.
7.0 Recommendations and Suggestions for Further Research
While this study has confirmed existing studies into HRIS, it provides a platform for future work in this area, which should concentrate on a number of issues.
First, a detailed research would be needed to explore the role of HRIS in SHRM, especially; with much, bigger sample size and a higher response rate so that a deeper analysis can be done for generalization.
Second, HRIS represent a large investment decision for companies of all sizes. However, SMEs are increasingly failing to use HRIS in support of strategic HRM tasks. It would therefore be very interesting if future research could geared towards finding answers to why SMEs are reluctant to commit time and resources for the implementation of HRIS in strategic HR tasks. This will enable a careful analysis and diligent consideration of HRIS application to strategic HR tasks since a successful execution is rewarded with numerous benefits including improved accuracy, provision of just-in-time information, and costs saving (Lederer, 1984; Wille and Hammond, 1981).
Third, an in-depth study on HRIS usage in support of trade unions' relations with organizations needs further examination. This will allow both the trade unions and the employers to manage and resolve conflicts and other related labor issues efficiently and effectively.
Finally, as HRIS becomes an increasingly vital component of SHRM tasks performance, researchers must expand their efforts to understand the opportunities and threats that it fosters. Human resource information systems may be a key enabler allowing HR 82 professionals to balance successfully the competing roles of administrative expert, employee champion, change agent, and strategic partner (Ulrich, 1998). There is also a risk that large investments in HRIS will not improve HR professionals' satisfaction or render the SHRM tasks performance a more efficient cost center. This may be outgrowth of low technology-acceptance among intended users, inappropriate technology choices, or other factors. Until more is known, investments in these innovations should proceed with caution.